Case Analysis Of The Private Sale Of Financial Products By The Staff Of Huaxia Bank

After the reform and opening up,China’s economy has entered a boom time,financial markets also present a more prosperous scene,great changes have taken place in people’s living standard,the national economic strength has increased dramatically.After people meet the basic needs of life,they begin to use idle funds to seek more returns.In recent years,China’s stock market has been stagnant,which is not a good investment opportunity for the people.Therefore,financial products which have high security and better profit created a new opportunity for investors.Since the first financial products issued in 2004,as time goes,the financial market,with rapid growth and the growing scale,became the most appropriate spokesperson of shadow banking.The competition situation on financial products market is increasingly serious.On the surface,Although there are more kinds of financial products,those issued by commercial Banks have serious homogeneity phenomenon,risk control ability and information disclosure system are still lacking.China’s financial market developed late,relevant laws and regulations is not sound,trading mechanism is not yet mature,there is a big gap in the degree of specification compared with abroad,the financial market likes a born baby outbreak problems frequently.Countries’ development must rely on economic support,Banking-led finance is the core of economic,it relates to the stability of the financial order and prosperity of the country,which determined by the normative development of the banking sector.This paper takes the typical representative in the case of financial products default,"Huaxia bank employees sale financial products privately" as an example.In 2012,the senior account manager PuTingTing of Huaxia bank’s Shanghai jiading branch sold to investors "Zhongding series" financial products illegally,whose expected rate of return as high as 3-4times of ordinary financial products.Investors trust bank blindly,Before purchase,there is no excessive analysis and understanding of the product,finally only to be told that the money can not honour,investors rushed to demand compensation from the Huaxia bank,but Huaxia bank stated that this fly sheet was the personal behavior of Putingting,the bank didn’t aware and suggested that it has nothing to do with the bank,refused to compensate for the lossesresolutely.This paper intends to elaborate and analyze the single case of huaxia bank,clarify the causes of financial products’ fault in Huaxia bank are mainly control mechanism is not sound,investors lack of professional knowledge,relevant government departments’ lax supervision,etc.Therefor,there are some suggestions.Banks should strengthen risk control,abide by the information disclosure system strictly;Investors are responsible for themselves,learning professional investment knowledge;The regulatory authorities will improve relevant laws and regulations,and deal with such cases of financial products default strictly.